Sandvik's Fourth-Quarter 2024 Interim Report: Growth Across Key Metrics
On January 23, 2025, Sandvik, a global leader in materials technology and mining equipment, released its interim report for the fourth quarter of 2024, revealing strong performance despite a volatile global market environment. The report highlights growth in order intake, revenues, and profits, indicating continued resilience in Sandvik’s operations.
Key Highlights of Q4 2024
Order Intake: Sandvik's order intake for the fourth quarter reached SEK 31,562 million, up from SEK 30,062 million in the same period in 2023. This marks a 5% increase at fixed exchange rates, signaling strong demand across its industrial segments, including mining, automation, and materials technology.
Revenues: Revenues for the quarter totaled SEK 32,151 million, up from SEK 31,816 million in the fourth quarter of the previous year. At fixed exchange rates, revenue growth was 1%, reflecting a stable performance across the company’s business units.
Adjusted EBITA and Margin: Sandvik’s adjusted EBITA (Earnings Before Interest, Tax, and Amortization) for the quarter stood at SEK 6,288 million, slightly higher than SEK 6,211 million in Q4 2023. The adjusted EBITA margin was 19.6%, a modest increase from 19.5% in the same period last year, underscoring the company's operational efficiency and ability to maintain profitability.
Adjusted EBIT and Margin: The adjusted EBIT reached SEK 5,741 million, almost unchanged from SEK 5,738 million in Q4 2023. However, the adjusted EBIT margin decreased slightly to 17.9%, from 18.0% in the previous year, primarily driven by increased operating costs and investment in growth initiatives.
Profit and Earnings Per Share
Adjusted Profit Before Tax: Sandvik’s adjusted profit before tax for Q4 amounted to SEK 5,377 million, an increase from SEK 5,107 million in the same quarter of 2023. This reflects the company’s strong financial discipline and effective cost management strategies.
Profit for the Period: The profit for the period reached SEK 4,297 million, slightly higher than SEK 4,259 million recorded in the fourth quarter of 2023, showing stable profitability in a challenging global environment.
Adjusted Profit for the Period: Adjusted profit for the period amounted to SEK 4,084 million, an increase from SEK 4,047 million in Q4 2023, maintaining a consistent growth trajectory.
Earnings Per Share: Sandvik's diluted earnings per share for Q4 stood at SEK 3.42, a slight increase from SEK 3.39 in the same period last year. The adjusted earnings per share were SEK 3.25, up from SEK 3.22 in Q4 2023, reflecting solid earnings growth for shareholders.
Free Operating Cash Flow
Free Operating Cash Flow:
The company’s free operating cash flow reached SEK 6,463 million, a notable increase from SEK 5,463 million in Q4 2023, demonstrating strong cash generation despite the challenging global market conditions. This positions Sandvik well for future investments and shareholder returns.
Key Takeaways and Strategic Outlook
Sandvik’s fourth-quarter 2024 results reflect a strong operational performance, with solid growth in order intake, revenue, and profitability. The company’s ability to maintain positive momentum, despite global challenges such as inflation and supply chain disruptions, is a testament to its resilience and efficient business model.
Sandvik’s diverse portfolio, which includes solutions in mining, materials technology, automation, and engineering, continues to provide a solid foundation for future growth. With stable cash flow, increasing profits, and ongoing investments in technology, Sandvik is well-positioned for long-term success.
As the company enters 2025, it remains focused on enhancing its product offerings, market share, and sustainability initiatives, with an eye on maintaining its competitive edge in the global market.
